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intel ipw3945 driver requires kernel 2.6.18+. that's probably the reason why it's removed from your system after the update since you have 2.6.16. i would suggest that you upgrade to suse 10.3 or upgrade your kennel. or, you can try to download the driver from intel, http://downloadcenter.intel.com/filter_results.aspx?strTypes=all&ProductID=2259&OSFullName=Linux*&lang=eng&strOSs=39&submit=Go%21
, install & configure it by urself. it might work w/ an old kernel but it's not the right way to go.
i am not a big fan of suse, so i would encourage you to try another distribution, for example, pclinux (also rpm-based).